The government, in the first tranche, is planning to sell over 2.91 lakh enemy property shares in 84 companies to individuals and corporations. On Thursday, it said that it is looking to sell about 1.88 lakh shares in 20 companies.
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According to public notice, the government has invited bids from 10 categories of buyers, including individuals, NRIs, Hindu Undivided Families (HUFs), Qualified Institutional Buyers (QIBs), trusts, and companies by February 8.
Through the process, it aims at selling the assets of individuals who have migrated to Pakistan and China. For those unversed, properties left behind by those who have migrated to Pakistan and China and have taken citizenship of these countries, mostly between 1947 and 1962, are called enemy property.
It is a part of the government’s initiative to dispose of enemy property in the country. The buyers will have to bid for shares. The price will be rejected if quoted below the reserve price set by the government. In addition to that, the reserve price will be kept confidential.
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The Custodian of Enemy Properties for India (CEPI) holds as many as 2,91,536 shares of 84 companies.The Department of Investment and Public Asset Management (DIPAM) released a public notice that read, “GoI proposes to sell 2,91,536 shares of 84 companies”.
The notice also included the names of 20 companies along with 1,87,887 shares it proposes to divest.“Shares will be allotted to eligible bidders who have submitted a valid price bid, on a price priority basis subject to the approval of the government of India,” the DIPAM added in its notice.
It is pertinent to note that the interested buyers will be required to submit their bids which also need to indicate the number of shares of companies they intend to bid for. They also need to mention the bid price for the respective shares in a specified form and shall fix a reserve price for each share of each of these companies.
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The procedure and mechanism for the disposal of enemy shares was approved by the Cabinet on November 8, 2018, under the custody of CEPI.
